2006 (1) TMI 88

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..... e there was a "doubly taxed" income. When the income is doubly taxed, the assessee is entitled to the unilateral relief under section 91 of the Income-tax Act - In such circumstance, the above question referred to us is answered in favour of the assessee and against the Revenue
Judge(s) : K. RAVIRAJA PANDIAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.P.S. Janarthana Raja J.- At the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following question of law arising out of the order dated September 11,1997 in I.T.A. No. 2158/Mds/90 for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding .....

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..... elief for double taxation and further directed to recompute the double income-tax relief on the foreign income of Rs. 25,61,426. Aggrieved by the order of the first appellate authority, the Revenue filed an appeal to the Income-tax Appellate Tribunal. The Tribunal held that the order of the Commissioner of Income-tax (Appeals) was correct, relying on the decision of the Supreme Court in the case of K.V.AL.M. Ramanathan Chettiar v. CIT [1973] 88 ITR 169. Aggrieved by the said order of the Tribunal, the Revenue filed the reference application before the Tribunal and the Tribunal has referred the aforesaid question for our opinion. Learned counsel appearing for the Revenue submitted that the Assessing Officer was right in excluding the dedu .....

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..... e the income computed in the normal sense before adjustment of deduction under section 35B. What is contemplated by the term or expression "income" in the said section is not an exact quantum or measure of the income as computed either in India or abroad for the purpose of taxation in the respective countries, but the income as ordinarily understood in a commercial business sense. This is so, because the Indian tax laws may not be identical to the laws obtaining in another country and the computation of income in either country would not result in the same quantum of income since each country has its own fiscal policies and tax structure and allowances. It is not in dispute that the income earned by the respondent-assessee in Iran was of Rs .....

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